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Universal

NYSE:UVV
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
UVV
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Universal Corporation engages in the supply of leaf tobacco products worldwide. The last earnings update was 22 days ago. More info.


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UVV Share Price and Events
7 Day Returns
-2.4%
NYSE:UVV
-1.1%
US Tobacco
0.5%
US Market
1 Year Returns
-8.9%
NYSE:UVV
-11.4%
US Tobacco
0.8%
US Market
UVV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Universal (UVV) -2.4% 12.5% -1.7% -8.9% 8% 3.9%
US Tobacco -1.1% -2% -10.2% -11.4% -21% 17.2%
US Market 0.5% 0.2% 1.1% 0.8% 37.4% 37.5%
1 Year Return vs Industry and Market
  • UVV outperformed the Tobacco industry which returned -11.4% over the past year.
  • UVV underperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
UVV
Industry
5yr Volatility vs Market

UVV Value

 Is Universal undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Universal to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Universal.

NYSE:UVV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:UVV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Tobacco Unlevered Beta Simply Wall St/ S&P Global 0.39
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.392 (1 + (1- 21%) (28.64%))
0.652
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:UVV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Universal is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:UVV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 97.12 Est @ -23.16% 90.35
2020 82.18 Est @ -15.39% 71.11
2021 74.00 Est @ -9.95% 59.57
2022 69.45 Est @ -6.15% 52.01
2023 67.03 Est @ -3.49% 46.69
2024 65.94 Est @ -1.62% 42.73
2025 65.73 Est @ -0.32% 39.62
2026 66.12 Est @ 0.6% 37.08
2027 66.94 Est @ 1.24% 34.92
2028 68.07 Est @ 1.69% 33.03
Present value of next 10 years cash flows $507.12
NYSE:UVV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $68.07 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$1,466.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,466.64 ÷ (1 + 7.5%)10
$711.74
NYSE:UVV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $507.12 + $711.74
$1,218.86
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,218.86 / 24.99
$48.77
NYSE:UVV Discount to Share Price
Calculation Result
Value per share (USD) From above. $48.77
Current discount Discount to share price of $59.03
= -1 x ($59.03 - $48.77) / $48.77
-21%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Universal is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Universal's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Universal's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:UVV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.14
NYSE:UVV Share Price ** NYSE (2019-06-14) in USD $59.03
Global Tobacco Industry PE Ratio Median Figure of 12 Publicly-Listed Tobacco Companies 13.18x
United States of America Market PE Ratio Median Figure of 3,091 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Universal.

NYSE:UVV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:UVV Share Price ÷ EPS (both in USD)

= 59.03 ÷ 4.14

14.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Universal is overvalued based on earnings compared to the Global Tobacco industry average.
  • Universal is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Universal's expected growth come at a high price?
Raw Data
NYSE:UVV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
19.1%per year
Global Tobacco Industry PEG Ratio Median Figure of 7 Publicly-Listed Tobacco Companies 1.78x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Universal, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Universal's assets?
Raw Data
NYSE:UVV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $53.50
NYSE:UVV Share Price * NYSE (2019-06-14) in USD $59.03
United States of America Tobacco Industry PB Ratio Median Figure of 8 Publicly-Listed Tobacco Companies 5.05x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:UVV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:UVV Share Price ÷ Book Value per Share (both in USD)

= 59.03 ÷ 53.50

1.1x

* Primary Listing of Universal.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Universal is good value based on assets compared to the US Tobacco industry average.
X
Value checks
We assess Universal's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tobacco industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tobacco industry average (and greater than 0)? (1 check)
  5. Universal has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

UVV Future Performance

 How is Universal expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Universal, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Universal expected to grow at an attractive rate?
  • Universal's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Universal's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare Universal's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NYSE:UVV Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:UVV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 19.1%
United States of America Tobacco Industry Earnings Growth Rate Market Cap Weighted Average 7%
Global Tobacco Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:UVV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:UVV Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,227 165 104
2018-12-31 2,163 35 103
2018-09-30 2,180 96 121
2018-06-30 2,129 32 115
2018-03-31 2,034 81 106
2017-12-31 2,076 18 34
2017-09-30 2,092 2 38
2017-06-30 2,060 117 34
2017-03-31 2,071 250 21
2016-12-31 2,225 359 107
2016-09-30 2,141 351 98
2016-06-30 2,140 315 95

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Universal's earnings are expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Universal is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:UVV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Universal Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:UVV Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.14
2018-12-31 4.11
2018-09-30 4.79
2018-06-30 4.58
2018-03-31 4.18
2017-12-31 1.33
2017-09-30 1.54
2017-06-30 1.40
2017-03-31 0.89
2016-12-31 4.68
2016-09-30 4.29
2016-06-30 4.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Universal will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Universal's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Universal has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

UVV Past Performance

  How has Universal performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Universal's growth in the last year to its industry (Tobacco).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Universal's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Universal's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Universal's 1-year earnings growth is negative, it can't be compared to the Global Tobacco industry average.
Earnings and Revenue History
Universal's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Universal Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:UVV Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,227.15 104.12 224.29
2018-12-31 2,162.93 103.28 222.91
2018-09-30 2,180.40 120.54 213.61
2018-06-30 2,129.04 115.26 216.83
2018-03-31 2,033.95 105.66 200.46
2017-12-31 2,076.48 33.66 203.11
2017-09-30 2,091.67 38.22 206.34
2017-06-30 2,060.37 33.63 199.25
2017-03-31 2,071.22 20.89 212.88
2016-12-31 2,225.17 106.65 213.60
2016-09-30 2,140.99 97.54 215.61
2016-06-30 2,140.43 94.74 235.59
2016-03-31 2,120.37 94.27 226.69
2015-12-31 2,094.55 92.11 239.25
2015-09-30 2,268.01 100.58 238.71
2015-06-30 2,275.75 93.11 237.71
2015-03-31 2,271.80 99.75 250.19
2014-12-31 2,183.56 80.58 237.60
2014-09-30 2,193.31 66.15 250.53
2014-06-30 2,380.06 76.57 259.17
2014-03-31 2,542.12 134.16 262.01
2013-12-31 2,497.29 133.59 267.43
2013-09-30 2,409.52 130.55 261.89
2013-06-30 2,433.84 153.08 252.71
2013-03-31 2,461.70 117.90 235.30
2012-12-31 2,470.57 117.55 237.06
2012-09-30 2,462.96 140.46 240.88
2012-06-30 2,428.80 84.44 239.26

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Universal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Universal used its assets less efficiently than the Global Tobacco industry average last year based on Return on Assets.
  • Universal has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Universal's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tobacco industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Universal has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

UVV Health

 How is Universal's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Universal's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Universal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Universal's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Universal's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Universal Company Filings, last reported 2 months ago.

NYSE:UVV Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,379.88 422.53 297.56
2018-12-31 1,389.78 497.75 138.36
2018-09-30 1,378.42 517.31 67.88
2018-06-30 1,362.27 442.47 66.01
2018-03-31 1,385.30 414.51 234.13
2017-12-31 1,370.67 419.80 146.58
2017-09-30 1,328.98 467.18 41.20
2017-06-30 1,321.84 413.89 128.61
2017-03-31 1,326.58 427.87 283.99
2016-12-31 1,481.50 420.70 411.51
2016-09-30 1,438.90 450.57 294.89
2016-06-30 1,424.92 453.30 316.09
2016-03-31 1,453.06 445.33 319.45
2015-12-31 1,419.20 437.47 167.63
2015-09-30 1,387.71 462.53 68.97
2015-06-30 1,383.84 456.55 130.44
2015-03-31 1,397.09 432.91 248.78
2014-12-31 1,404.55 486.77 120.32
2014-09-30 1,378.88 708.74 29.57
2014-06-30 1,390.59 558.76 148.46
2014-03-31 1,410.89 420.09 163.53
2013-12-31 1,391.31 433.41 191.87
2013-09-30 1,359.46 582.94 74.63
2013-06-30 1,314.51 524.25 124.47
2013-03-31 1,287.66 499.50 367.86
2012-12-31 1,276.45 484.31 341.57
2012-09-30 1,247.96 492.01 115.69
2012-06-30 1,206.42 559.13 207.39
  • Universal's level of debt (30.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (29.9% vs 30.6% today).
  • Debt is well covered by operating cash flow (38.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.4x coverage).
X
Financial health checks
We assess Universal's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Universal has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

UVV Dividends

 What is Universal's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.15%
Current annual income from Universal dividends.
If you bought $2,000 of Universal shares you are expected to receive $103 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Universal's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Universal's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

Purchase Universal before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:UVV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Global Tobacco Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 5.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:UVV Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-22 3.040 5.223
2018-11-08 3.000 5.219
2018-08-07 3.000 4.715
2018-05-23 3.000 4.555
2018-02-06 2.200 4.515
2017-11-07 2.200 4.198
2017-08-03 2.160 3.755
2017-05-23 2.160 3.315
2017-02-07 2.160 3.058
2016-11-08 2.160 3.472
2016-05-24 2.120 3.701
2016-02-03 2.120 3.863
2015-11-05 2.120 3.884
2015-08-04 2.080 4.062
2015-05-19 2.080 3.771
2015-02-03 2.080 4.435
2014-11-06 2.080 5.108
2014-08-05 2.040 4.327
2014-05-20 2.040 3.753
2014-02-07 2.040 3.692
2013-11-05 2.040 3.911
2013-08-06 2.000 3.861
2013-05-21 2.000 3.330
2013-02-05 2.000 3.532
2012-11-06 2.000 3.948
2012-08-07 1.960 3.978
2012-05-22 1.960 4.291
2012-02-07 1.960 4.256
2011-11-08 1.960 4.328
2011-08-04 1.920 4.912
2011-05-19 1.920 5.043
2011-02-08 1.920 4.527
2010-11-04 1.920 4.773
2010-08-03 1.880 4.826
2010-05-20 1.880 4.526
2010-02-04 1.880 3.553
2009-11-05 1.880 4.055
2009-08-04 1.840 4.524

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Universal's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Universal's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Universal afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Universal has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

UVV Management

 What is the CEO of Universal's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
George Freeman
COMPENSATION $3,711,199
AGE 55
TENURE AS CEO 11.2 years
CEO Bio

Mr. George C. Freeman, III, has been Chairman of Universal Corporation since August 5, 2008. Mr. Freeman has been Chief Executive Officer of Universal Corporation since April 1, 2008. Mr. Freeman has been President of Universal Corporation since December 12, 2006. Mr. Freeman served as the Principal Financial Officer of Universal Corporation since January 12, 2017 until March 14, 2017. Mr. Freeman served as General Counsel and Secretary at Universal Corporation from February 2001 to November 2005 and served as its Vice President since November 2005. Mr. Freeman has been employed with Universal Corporation since 1997. He has been Independent Director of Tredegar Corp. since May 2011. He has been a Director of Universal Corporation since November 07, 2007. Prior to joining Universal, Mr. Freeman served as a Law Clerk for the Honorable Richard S. Arnold, Circuit Judge, United States Court of Appeals for the Eighth Circuit; a Law Clerk for the Honorable Lewis F. Powell, Jr., Associate Justice, United States Supreme Court; and an Associate with Hunton & Williams, an international law firm.

CEO Compensation
  • George's compensation has been consistent with company performance over the past year, both up more than 20%.
  • George's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Universal management team in years:

8.2
Average Tenure
55
Average Age
  • The average tenure for the Universal management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

George Freeman

TITLE
Chairman
COMPENSATION
$4M
AGE
55
TENURE
11.2 yrs

Airton Hentschke

TITLE
COO & Senior VP
COMPENSATION
$2M
AGE
48
TENURE
4.2 yrs

Preston Wigner

TITLE
VP, General Counsel & Secretary
COMPENSATION
$1M
AGE
49
TENURE
13.6 yrs

Theodore Broome

TITLE
Executive VP & Sales Director of Universal Leaf Tobacco Company Inc
COMPENSATION
$1M
AGE
64
TENURE
8.2 yrs

Johan Kroner

TITLE
Senior VP & CFO
AGE
50
TENURE
0.8 yrs

Robert Peebles

TITLE
Executive Officer
AGE
60

Candace Formacek

TITLE
VP & Treasurer
AGE
58
TENURE
7.2 yrs

Scott Bleicher

TITLE
VP & Controller
AGE
40

C. Claiborne

TITLE
VP & Assistant Secretary
AGE
57
TENURE
18.4 yrs
Board of Directors Tenure

Average tenure and age of the Universal board of directors in years:

6.6
Average Tenure
65
Average Age
  • The tenure for the Universal board of directors is about average.
Board of Directors

George Freeman

TITLE
Chairman
COMPENSATION
$4M
AGE
55
TENURE
10.8 yrs

Tom Johnson

TITLE
Director
COMPENSATION
$143K
AGE
68
TENURE
18.4 yrs

Bob Sledd

TITLE
Director
COMPENSATION
$153K
AGE
65
TENURE
9.8 yrs

Diana Cantor

TITLE
Director
COMPENSATION
$150K
AGE
60
TENURE
7.4 yrs

Mike Lawton

TITLE
Director
COMPENSATION
$147K
AGE
59
TENURE
2.8 yrs

Eddie Moore

TITLE
Lead Independent Director
COMPENSATION
$162K
AGE
70
TENURE
2.8 yrs

Lennart Freeman

TITLE
Director
COMPENSATION
$149K
AGE
67
TENURE
5.8 yrs

Thomas Tullidge

TITLE
Director
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Universal insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Jun 19 Sell James Huffman Individual 11. Jun 19 11. Jun 19 -1,745 $60.50 $-105,573
31. May 19 Sell Preston Wigner Individual 29. May 19 29. May 19 -2,500 $56.25 $-140,623
31. May 19 Sell James Huffman Individual 30. May 19 30. May 19 -1,862 $57.10 $-106,320
06. Mar 19 Sell James Huffman Individual 01. Mar 19 01. Mar 19 -2,277 $59.52 $-135,522
06. Mar 19 Sell Robert Peebles Individual 28. Feb 19 28. Feb 19 -7,274 $59.56 $-433,253
20. Nov 18 Sell James Huffman Individual 20. Nov 18 20. Nov 18 -149 $66.75 $-9,946
19. Nov 18 Sell James Huffman Individual 15. Nov 18 16. Nov 18 -3,112 $67.23 $-209,214
29. Oct 18 Sell John Adams Individual 25. Oct 18 25. Oct 18 -3,000 $68.00 $-201,856
X
Management checks
We assess Universal's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Universal has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

UVV News

Simply Wall St News

How Should Investors React To Universal Corporation's (NYSE:UVV) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Check out our latest analysis for Universal How Does George Freeman's Compensation Compare With Similar Sized Companies? … With a total shareholder return of 21% over three years, Universal Corporation shareholders would, in general, be reasonably content.

Simply Wall St -

How Has Universal Corporation's (NYSE:UVV) Performed Against The Industry?

Below, I assess UVV's latest performance announced on 31 March 2019 and evaluate these figures to its historical trend and industry movements. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -1.2%, indicating the rate at which UVV is growing has slowed down. … I recommend you continue to research Universal to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for UVV’s future growth?

Simply Wall St -

Does Universal Corporation's (NYSE:UVV) P/E Ratio Signal A Buying Opportunity?

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Universal: P/E of 12.66 = $52.02 ÷ $4.11 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings. … The P/E ratio indicates whether the market has higher or lower expectations of a company.

Simply Wall St -

Is Universal Corporation (NYSE:UVV) A Good Dividend Stock?

On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … In this case, Universal likely looks attractive to investors, given its 5.7% dividend yield and a payment history of over ten years. … When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable.

Simply Wall St -

Why Universal Corporation’s (NYSE:UVV) Return On Capital Employed Looks Uninspiring

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed

Simply Wall St -

4 Days Left Until Universal Corporation (NYSE:UVV) Trades Ex-Dividend

Important news for shareholders and potential investors in Universal Corporation (NYSE:UVV): The dividend payment of US$0.75 per share will be distributed to shareholders on 06 May 2019, and the stock will begin trading ex-dividend at an earlier date, 05 April 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Universal's latest financial data to analyse its dividend attributes. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

Simply Wall St -

Can We See Significant Institutional Ownership On The Universal Corporation (NYSE:UVV) Share Register?

The big shareholder groups in Universal Corporation (NYSE:UVV) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies that have been privatized tend to have low insider ownership.

Simply Wall St -

Is Universal Corporation's (NYSE:UVV) Balance Sheet A Threat To Its Future?

While small-cap stocks, such as Universal Corporation (NYSE:UVV) with its market cap of US$1.5b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … I believe these basic checks tell most of the story you need to know.

Simply Wall St -

With A 8.0% Return On Equity, Is Universal Corporation (NYSE:UVV) A Quality Stock?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.080. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Universal Corporation's (NYSE:UVV) CEO Being Overpaid?

George Freeman became the CEO of Universal Corporation (NYSE:UVV) in 2008. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does George Freeman's Compensation Compare With Similar Sized Companies?

Simply Wall St -

UVV Company Info

Description

Universal Corporation engages in the supply of leaf tobacco products worldwide. The company operates through North America, South America, Africa, Europe, Asia, Dark Air-Cured, Oriental, and Special Services segments. It is involved in procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; e-liquid testing services; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke, as well as engages in the research and development growth trials with various partners for non-tobacco agriproducts production, such as vanilla. Further, it produces and sells dehydrated and juiced fruit and vegetable products, as well as provides water pipe style leaf tobacco; and recycles waste materials from tobacco production. The company was founded in 1886 and is headquartered in Richmond, Virginia.

Details
Name: Universal Corporation
UVV
Exchange: NYSE
Founded: 1886
$1,475,127,823
24,989,460
Website: http://www.universalcorp.com
Address: Universal Corporation
9201 Forest Hill Avenue,
Richmond,
Virginia, 23235,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE UVV Common Stock New York Stock Exchange US USD 02. Jan 1968
DB UVV Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0LJD Common Stock London Stock Exchange GB USD 02. Jan 1968
Number of employees
Current staff
Staff numbers
28,000
Universal employees.
Industry
Tobacco
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 23:53
End of day share price update: 2019/06/14 00:00
Last earnings filing: 2019/05/24
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.